A debut for Michael's younger--dare we say smarter?--brother.
Dell Ringer
By Leigh Gallagher
AS ONE DELL SEEMS TO BE
SINKing--shares of the number one PC-maker are down 26% this
year--another is rising. Adam Dell, Michael's 30-year-old kid
brother, has just launched Impact Venture Partners, a $100 million,
New York-based VC fund that has put $33 million primarily into
business-to-business Web startups. Among the big backers: Credit
Suisse First Boston's Frank Quattrone, Crosspoint Venture Partners'
John Mumford, Weyerhaeuser Co. and Michael Dell's MSD Capital.
Adam insists the best "B2B" ideas will come from old industries
(textiles, plastics, transportation), mostly in the Northeast. "The
venture business on the East Coast is populated by ex-money people
used to deals that discount cash flow and who use words like
liquidation provisions," he says. "They don't get it."
Dell almost didn't get it, either. After practicing law in Austin
for two years, he sent his resume to top VC firms like Kleiner,
Perkins and Hummer Winblad. His name got him in the door, but not a
step farther. After several rejections, Dell landed a job at
Enterprise Partners, then at Crosspoint, where he discovered
startups like Technical Communities, an online community for the
equipment-testing industry; National Transportation Exchange, a
marketplace for buyers and sellers of ground transportation; and
Buzzsaw.com, an e-commerce site for the commercial construction
business.
So does his big brother ever pick his brain? Adam says they talk
frequently, sometimes about business ideas. "It'll be interesting to
see who makes the best bet on the Internet," muses Crosspoint's
Mumford. "Adam--or Michael?"
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OutFront
People
From February 21, 2000 Issue
